BLB Solicitors
  • +01225 755656
  • enquiries@blbsolicitors.co.uk
BLB Solicitors
  • +01225 755656
  • enquiries@blbsolicitors.co.uk
  • Home
  • Services for You
    • Conveyancing Solicitors
    • Leasehold Solicitors
    • Property Dispute Solicitors
    • Divorce, Family Law and Mediation
    • Lifetime Planning and Wills
    • Probate and Estate Administration
    • Equity Release Solicitors
    • Retirement Property Conveyancing
    • Personal Injury Compensation
    • Medical Negligence Solicitors
  • Services for Business
    • Commercial Property
    • Commercial Property Disputes
    • Corporate & Commercial Legal Advice
    • Estate Management Solicitors
  • BLB Solicitors Locations
    • Almondsbury Solicitors
    • Bath Solicitors
    • Bristol Solicitors
    • Bradford on Avon Solicitors
    • Swindon Solicitors
    • Trowbridge Solicitors
  • About Us
    • Our Team
    • Working for BLB
    • BLB Solicitors – How we work
    • Making Payments to BLB Solicitors
    • Instructing BLB Solicitors
    • Terms of Business
    • Complaints Policy
    • Interest Policy
  • Blog
  • Contact Us

Home » A Budget to stimulate the housing market

Conveyancing
Chancellor's Red Budget Case
Mar 3rd, 2021

At BLB Solicitors, our goal is simple – to deliver you clear, practical legal advice and cost-effective solutions. We hope you enjoy exploring our Blog. If you can’t find what you’re looking for, please do contact us.

A Budget to stimulate the housing market

We react to the Chancellor’s Budget stimulus package for the housing market. To discuss your residential property requirements, including requesting a conveyancing quote, please contact our Property Team by email, or call them on 01225 462871. You can also request a conveyancing quote online.

Over the last couple of weeks, it’s been increasingly rumoured that against expectation, the Chancellor was on the cusp of announcing an extension to his Stamp Duty holiday. And so it’s transpired. In today’s budget, he announced that the temporary increase in the ‘nil-rate-band’ to £500,000 would continue until the end of June. The nil-rate-band will then fall to £250,000 from July until the end of September.

BLB property expert, Caroline Entwistle, said “While in recent days the Chancellor’s intention to extend the Stamp Duty holiday by three months had become all but certain, the surprise today has been the announcement of the additional three months of tapering. This will mean that the cliff edge facing buyers unable to complete by the end of June will not be quite as precipitous as that which had been predicted for the end of March.”

Supply vs Demand

We recently reported that while levels of demand in the housing market remain healthy, supply has become a real problem. In January, 21% fewer properties came to market than in January 2020. Whether this extension to the Stamp Duty holiday will encourage more homeowners to market their property remains to be seen. It’s hoped that with the vaccination rollout continuing apace, firm plans for lockdown easing, and spring almost upon us, those supply problems will begin to ease.

95% mortgages

Perhaps of greater benefit to first-time buyers is the Chancellor’s announcement of a low-deposit guarantee scheme. While not limited to first-time buyers, they will certainly be the major beneficiaries. Economic uncertainty surrounding the pandemic has seen the vast majority of high loan to value mortgage products withdrawn by mortgage lenders.

“A few lenders have reintroduced high loan to value products over the last couple of months, but those still require a deposit of at least 10%, which is beyond many first-time buyers,” said Caroline. “And without first-time buyers entering the market, the market will quickly stall. Providing a government-backed guarantee to those lenders prepared to advance 95% of the purchase price is bound to increase the number of products available, in turn providing considerable stimulus to the market.”

The government-backed mortgages will be available to all buyers of properties costing up to £600,000, which currently accounts for 86% of homes on the market in the UK. Buyers will also be able to fix their initial mortgage interest rate for at least five years.

BLB Solicitors
Request a Call Back

Recent Articles

  • Is buying ‘off plan’ a good plan?
  • What to expect of the property market in the second half of 2025
  • House insurance on exchange of contracts
  • What are Requisitions on Title in conveyancing?
  • Do I need planning permission for a fence?

Newsletter Sign-up

* indicates required

Share this article

You may also like...
  • Mar 19th, 2025
    What is a conveyancing contract?
    Read Article
  • Apr 15th, 2025
    Profits à prendre: an introduction
    Read Article
View All Related Articles
Get in-touch today
Contact Form

Left Column

Right Column

Centre

 
Sending
  • Bristol Solicitors

    0117 905 5308
  • Bath Solicitors

    01225 462871
  • Bradford on Avon Solicitors

    01225 866541
  • Swindon Solicitors

    01793 615011
  • Trowbridge Solicitors

    01225 755656
  • Almondsbury Solicitors

    0117 905 5308
Authorised & Regulated by Solicitors Regulation Authority (No. 636644)
©2025 BLB Solicitors | Terms | Privacy | Legal